Telecoms to make €30 billion broadband Capex in 3 years in Western Europe

Telecom carriers will be investing €30 billion towards broadband Capex (capital spending) in Western Europe in the next three years, said IHS.

The report said government bodies and telecoms across Germany, France, UK, Italy and Spain will spend €200 per household on next-generation broadband rollout.

Deutsche Telekom will be investing €6 billion investment in Germany. Deutsche Telekom’s total investment will be €30 billion in high speed broadband technology till 2015.

A significant portion of Deutsche Telekom’s investment is committed to the US for LTE build-out, but €6 billion will be devoted to next-generation broadband rollout in Germany.

Broadband user

The IHS report said Deutsche Telekom will ensure that 65 percent of homes are covered by its fiber-to-the-cabinet (FTTC) network by 2016. It will be deploying the new vectoring technology to raise transmission rates to 100Mbit/s.

Meanwhile, France will see €20 billion investment from public and commercial sources, the report noted.

In 2013, the French government decided to invest €20 billion of public and private funds in next-generation fixed and mobile broadband, aiming to cover half of the population by 2017, with the remaining homes covered within a further five years.

€5 billion is the Capex from BT and central government in the U.K.

In 2013, the UK government committed to ensuring that 95 percent of UK homes receive speeds of at least 24Mbit/s by 2017. Coupled with BT’s investment in FTTC and FTTH broadband, intended to cover nearly 20 million homes by the end of 2014, over €5 billion is being spent on upgrading the UK’s broadband infrastructure.

Spain will also see hectic activity in the broadband space.

Telefonica Spain, Vodafone and Orange are to invest over €1 billion in a joint fiber optic network covering 6 million homes by 2017, and have signed additional deals to share fiber infrastructure in buildings in Spain.

Telecom Italia plans to invest €1.8 billion in ultra-broadband. The company aims to cover over half of the population with its ultra-broadband by 2016. The company is earmarking €1.8 billion in fixed access and €0.9 billion for expanding its next-gen mobile network.

picture source; livemint

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